Transcription of RISK ANALYSIS AND MANAGEMENT. BASIC …
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RISK ANALYSIS AND MANAGEMENT. BASIC …
Terje Aven RISK ANALYSIS AND management . BASIC CONCEPTS AND principles R&RATA # 1 (12) ( ) 2009, March - 57 - RISK ANALYSIS AND management . BASIC CONCEPTS AND principles T. Aven University of Stavanger, Norway e-mail: ABSTRACT This paper reviews and discusses some key concept and principles of risk ANALYSIS and risk management , based on a set of statements, formulated as myths about risk. Examples of such myths are: risk is equal to the expected value, risk equals uncertainty, risk can be expressed by probabilities, risk is equal to an event, risk acceptance criteria contribute to obtaining a high safety standard, and ALARP can be verified by cost-benefit analyses.
Terje Aven – RISK ANALYSIS AND MANAGEMENT. BASIC CONCEPTS AND PRINCIPLES R&RATA # 1 (12) (Vol.2) 2009, March - 59 - Yes, it is likely that if C is the sum of a number of projects, or some average number, our
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